Let’s be honest, reconciliation is a pain. It’s a battle, a struggle and an all-around nuisance for corporates, albeit a necessary one.
Virtual Account Management: Fast, effective relief from the pain of reconciliation
Getting paid is crucial, irrespective of business size. As is assigning payments to the correct accounts and knowing your cashflow at a glance – writes Sheri Brandon – Head of Payments, Tieto.
Corporates operate multiple accounts across multiple jurisdictions. These are often denominated in different currencies and can be with different banks. There are also internal requirements to structure accounts by company, sub-company, division or department.
All these multiples and differences can quickly add up to a back-office headache. It’s resource-intensive to administer. It’s inefficient. It may even dictate the speed and scope of front-office business expansion in a worst case scenario.
When better reconciliation equals better reporting, better performance tracking and better decision-making, there must be a better way…
Stronger than pain
Tieto is a software and services company, so you probably won’t be surprised by what comes next. We believe that this better way is digital and virtual. What may surprise you, though, is the functionality and time-to-market of our virtual account management (VAM) solution.
VAM gives liquidity overviews in real time for better reporting. It both aggregates and segregates accounts for better tracking, visibility and transparency of funds. We’ve had corporates implement hierarchies with as many as 12 levels or many thousands of accounts.
The biggest surprise to clients is that VAM can be implemented as a virtual overlay on legacy infrastructure within 6-8 months. It operates as a single platform, meaning incremental implementations and new propositions are just a question of configuration and are therefore also possible with minimum fuss and short time-to-market.
When only fast will do
We’ve drawn strongly on our Nordic heritage and telecoms expertise in creating VAM. Our clients and their corporates love it for speed, convenience, value and flexibility.
In true Nordic fashion, VAM is based on self-service and automation. Corporates can manage the virtual accounts themselves. They can define rules for their own corporate structures, allocate funds and get straight-through reconciliation of accounts, which translates into extra efficiencies and predictability.
For banks, self-service future-proofs both operating and revenue models. It moves traditional bank operational support to the corporates themselves. And it moves revenue streams from FX, operational and transactional fees towards those that come from empowering corporates to use their own data more effectively. For example, chargeable notification services and fees per virtual account.
And finally, our solution enable banks to provide their customers with real value-added services, based on the visibility and real-time access to aggregated and segregated liquidity information.
For more information
If you or your corporates are suffering from reconciliation pain, book a consultation with me today. I guarantee quick diagnosis of the root cause and a positive prognosis.
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